Binance Dollar Pegged to USD, The stablecoin now ranks fourth among other stablecoins by market capitalization after losing more than $1 billion in the past 30 days, according to CoinMarketCap.
At the time of writing, BUSD has a market capitalization of $4.3 billion, down 29% from $5.54 billion on May 18. The stablecoin has been on a downtrend since December 2022 when its market capitalization topped $23 billion. The decline in BUSD market cap parallel the s the major developments surrounding Binance following the sharp crash of FTX in November 2022. In December 2022, a report indicating that the US Department of Justice will target Binance resulted in net withdrawals of $3.6 billion in 7 days. The exchange saw massive BUSD Redemptions by market makers, including over $245 million from Jump Finance.
Binance partnered with Paxos Trust in September 2019 to create the BUSD stablecoin. Paxos publishes and owns the product, while Binance licenses its brand. For Paxos, the partnership presents new challenges. The firm reportedly received a Wells notice from the SEC in February ary stating that BUSD was an unregistered security.
The investigation led to the New York Department of Financial Services ordering Paxos to stop issuing BUSD. Together, these events ate into BUSD's market share, from $15.88 billion on February 12 to $8.38 billion on March 13.
The latest blow came when the SEC filed a lawsuit against Binance on June 5 alleging it offered unregistered securities. US Regulators File 13 Charges Against Exchange, Including Unregistered Offers and Sales of BNB and BUSD tokens.
